employment level of output Qf. In terms of this diagram, the long-run aggregatesupply ... 21. (Last Word) One of the implications of the supply-side anecdote ... paid by the government to work. B. it is unwise to dine with supply-side economists

shifting the short-runaggregate-supplycurve down to AS2, and moving t he economy from point B to point C, which is back on the long-run aggregatesupplycurve ... The economy begins in e quilibrium, with short-runaggregatesupply, AS1, intersecting

aggregate demand shifts to the right (to point B). In the shortrun ... and perceptions will adjust to this new price level. As a result, the short-runaggregate ...aggregate-supplycurve shifts to the left. When Intel invents a new and more powerful

by the shortrun aggregatesupplycurve (the inverse of the marginal product of labor). Here, short-run refers to the time period during which the capital stock is ﬁxed. Figure 2 shows the short-runaggregatesupplycurve, computed as the markup 1/W, in log

46) An inflationary gap means that short-run macroeconomic equilibrium GDP ... table show that the economy will be in a short-run macroeconomic equilibrium ... in the future. D) the long-run aggregatesupplycurve will shift leftward in the future. 51

a more rapid movement of the short-runaggregate-supplycurve and short-run Phillips ... the short-run Phillips curve. 8. a. If wage contracts have short durations, a recession ... b. The effects of this event do not mean there is no short-run trade-off